EURUSD hits resistance
The euro slipped after ECB policymakers cautioned about fast rate hikes. The vertical ascent is a sign of a short-squeeze against medium-term positions as the pair approaches the July high of 1.0480. Its breach would lift offers to another daily resistance at 1.0600. However, the RSI’s overbought situation combined with a mean reversion pressure could trigger a retracement. 1.0280 is the first support and its invalidation could give an excuse for profit-taking. Then 1.0160 would be a second level to expect follow-ups.
GBPJPY attempts to bounce
The pound struggles over a rise in the UK’s unemployment rate. The pair has been hovering above 163.50 at the base of a bullish breakout in mid-October. This suggests that the bulls are still in the game and are probing for the bottom. After all, on the daily chart, the directional bias remains up despite a choppy price action. The area between the round numbers 166.00 and 167.00 is the first hurdle. Its break could pave the way for a rally above 169.00. On the downside, 162.00 is another support in case of further hesitation.
XAUUSD hits major resistance
Gold stays muted as rising bond yields accompany the US dollar’s comeback. Momentum buying has pushed the precious metal near August’s high of 1803. The RSI’s multiple tops in the overbought zone and a bearish divergence indicate exhaustion and the rally may lose steam around the major supply zone. 1754 is the closest support and its breach would lead to further weakness. Then the precious metal could be vulnerable to both profit-taking and renewed selling. 1713 would be the bulls’ second line of defence.
